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Nominal Exchange Rate Dynamics for the Taka

Author

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  • Thomas M. FULLERTON

    (Department of Economics & Finance, University of Texas at El Paso, El Paso, TX 79968-0543, USA.)

  • Dipanwita BARAI

    (Department of Economics & Finance, University of Texas at El Paso, El Paso, TX 79968-0543, USA.)

  • Adam G. WALKE

    (Department of Economics & Finance, University of Texas at El Paso, El Paso, TX 79968-0543, USA.)

Abstract

Error correction modeling is used to model the nominal exchange rate for the Bangladeshi taka. Based on existing trade volumes and trade practices, the bilateral exchange rate of the taka with the dollar is analyzed. Annual frequency data are utilized for the study. The sample data cover the four decade period from 1976 to 2015. Results indicate that a balance of payments modeling approach performs more reliably than a monetary balances approach.

Suggested Citation

  • Thomas M. FULLERTON & Dipanwita BARAI & Adam G. WALKE, 2017. "Nominal Exchange Rate Dynamics for the Taka," Turkish Economic Review, KSP Journals, vol. 4(2), pages 130-148, June.
    • Handle: RePEc:ksp:journ2:v:4:y:2017:i:2:p:130-148
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    Cited by:

    1. Dipanwita Barai & Thomas M. Fullerton, Jr. & Adam G. Walke, 2018. "Exchange Rate Forecast Futility For The Taka," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(2), pages 1-7.

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    More about this item

    Keywords

    Regional economics; Business cycles; Economic indicators.;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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